Roku Extends Service To Home Audio Devices, Previews Assistant

Roku (ROKU) is best known for providing a platform for streaming video services, but now it wants to provide the same role for streaming music services.

X The Los Gatos, Calif.-based company on Wednesday announced a new whole home entertainment system that will let its hardware partners build soundbars and smart speakers, surround-sound and multiroom audio systems that use Roku Connect software to work together as a home entertainment network.

China-based television maker TCL is expected to show off the first device using Roku Connect software on Monday at the CES consumer electronics trade show in Las Vegas.

With Roku Connect, devices will be able to connect wirelessly and be controlled by voice commands and a single remote.

Roku shares climbed 6.5% to close at 55.44 on the stock market today. The stock is trading just below its all-time high of 58.80, reached on Dec. 19. Roku went public at $14 a share on Sept. 28.

Roku also announced plans to launch a voice assistant, called the Roku Entertainment Assistant, which will be optimized for home entertainment. The assistant and Roku Connect will be rolled out as a free software update to the Roku operating system this fall, enabling most Roku TV models and Roku streaming devices.

Roku also announced Wednesday that Magnavox has signed on as the ninth brand to use its Roku smart TV operating system. Magnavox, owned by Funai Electric of Japan, is set to bring its first Roku TVs to market this spring in the U.S.

Roku makes hardware and software for accessing internet video services like Netflix (NFLX), Hulu and Amazon (AMZN) Prime Video. It also gets revenue from selling advertising on its home screen and takes a share of pay-per-view movie sales and subscriptions sold through its platform.

Roku's new home entertainment strategy will give it a higher profile in selling subscription music services from Spotify, Pandora Media (P) and others.

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